Downside risks to EUR/USD remain as traders face the combination of dovish ECB minutes, eurozone economic growth prospects dimming and net-long EUR position unwinds.
Simmering global trade and political tensions as well as a hawkish leaning Fed also give traders little incentive to push EUR/USD higher.
With traders seeing no catalyst on the horizon that would lead to gains, it's likely the pair will trade on the heavy side for the time being.
Traders taking a longer-term bull view are likely to be fine with the current price action as the pair's broad 1.2100/1.2600 consolidation phase should persist.
The consolidation of long-term gains should eventually resolve with a break to new trend highs.
Rallies to the 1.2570/1.2640 and 1.3000/1.3100 zones are likely still in the cards.
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